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Central Asian Economic Review

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No 5-6 (2018)
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THEORY AND METHODOLOGY OF ECONOMIC SCIENCE

11-21 666
Abstract

The purpose – is to conduct a reasonable assessment of the degree of preparation and professionalism of the staff on the basis of meritocracy in the new conditions of creating a career model of public service in Kazakhstan.
Methodology – in preparing the article used a mathematical approach, statistical, comparative, systems and analytical methods of research.
The value of the work – is presented by statistical analysis and substantiation of economic factors affecting the efficiency of the civil service apparatus, as well as by conducting a comparative assessment of certification of public servants and the practical development of the conditions of meritocracy in the Kazakhstani system of government.
The main results – obtained include the provisions: currently the active process of reforming the civil service and the structure of the state apparatus continues; the use of meritocracy allowed to increase the transparency of management decisions; a review of foreign literature highlighted the appropriateness of harmony, transparency and fair remuneration of the best civil servants; economic and statistical evaluation justified the improvement in the quality of systemic training and vocational education of state employees in Kazakhstan; proved the effectiveness of the functioning of the career model of public service in the country.

22-32 489
Abstract

The purpose of the study – is to develop a methodology for the comprehensive analysis of insurance company’s obligations, taking into account the peculiarities of functioning of insurance companies.
Methodology – the study was conducted using the methods of coefficient and comparative analysis, descriptive method and generalization. Sources of research were scientific articles on the problems of state regulation of insurance activities and analysis of the activities of insurance companies. In the current work, the financial reports of insurance companies placed in the financial statements depository for public interest organizations are used.
Originality / value – the authors presented a method of integrated analysis of insurance companies. Based on the studies in the field of analysis methodical approach to managing the obligations of the insurance company was developed. According to the authors, the system of state regulation of the fulfillment by insurance companies of their obligations should be considered as the minimum acceptable values.
Conclusion – the method of financial analysis presented in the framework of this work based on data from financial statements subject to mandatory publication, will provide information on the overall assessment of the financial condition of insurance companies. The analysis makes it possible to determine the ability of the insurance company to fulfill its obligations now and in the future. It is possible to assess the degree of financial stability calculating actual coefficients and their comparison with normative ones.

33-43 797
Abstract

Purpose – to discuss the various theories that help to explain the definition of optimal capital structure. Give a brief overview of each type of models and their relationship with each other. Summarize and discuss the results obtained by the researchers, compare them with the available evidence.
Methodology – general scientific and general economic methods of analyses were used to solve the problems of the study.
Originality/value – the paper analyzes the scientific and theoretical views on the choice and optimization of capital structure. Paper surveys capital structure theories based on agency costs and asymmetric information. For each type of model, a brief overview of the papers surveyed and their relation to each other is provided. The central papers are described in some detail, and their results are summarized and followed by a discussion of related extensions.
Findings – many researchers have approached the study of optimal corporate capital structure.
Unfortunately, there has been little consensus among researchers on what the optimal capital structure is. However, it is important to synthesize the literature on capital structure and where possible, to relate the literature to known empirical evidence. In recent years, SMEs are one of the major contributors of growth in developing countries. A comprehensive study on capital structure determinants of SMEs must be provide insightful knowledge in this area.

44-51 234
Abstract

Purpose – on the basis of research and analysis of the state of science statistics, to identify problems and suggest the ways to eliminate them and the prospects for their development.
Methodology – the theoretical method of research, in particular the analysis of the legislative base of the Republic of Kazakhstan, the system of indicators, the use of methodologies, as well as the method of information synthesis, the comparative approach, deduction, the dialectical-logical approach, the study and analysis of international experience, synthesis, and others were used in writing the article.
Originality / Value – the assessment of the formation of the system of indicators of science statistics of the Republic of Kazakhstan was carried out, the quality was analyzed in comparison with the similar system of indicators of the Countries of Independent States (CIS) countries, as well as the reasons why the existing statistical information does not provide the needs of the interested society in complete, reliable, official statistics about the processes related to scientific activity in the Republic of Kazakhstan.
Findings – Unfortunately, until statistical observation on science does not provide objective initial data for assessing the scientific potential of the republic; its content, functioning and development. The survey program is limited in functionality and unrepresentative in content. The system of indicators of dynamic series is chaotic and does not reflect either the properties or trends of processes occurring in domestic science. Eurostat's experience in engaging users in the development of statistical monitoring programs is one of the main ways to improve the quality of statistics in the domestic science. This is especially relevant, because science becomes the main engine and strategic factor of economic growth.

52-61 711
Abstract

Purpose of research – for organizations that do not have the opportunity to acquire property necessary for conducting business, one of the ways to get out of the situation is to rent the property. According to the new international financial reporting standard for leases (IFRS 16), from 2019, all companies that prepare their financial statements under IFRS must reflect in their financial statements lease agreements, recognizing as new assets and liabilities.
The purpose of the scientific article is to consider the characteristics of organizations of accounting and evaluation of the object of obligations and assets associated with the lease.
Methodology – in this scientific article, the authors conducted a comparative analysis of the accounting for leases in accordance with IFRS 16 «Leases» and IFRS (IAS) 17 «Leases». The features of accounting of the rental object from the tenant and from the lessor are investigated. A new methodology for estimating liabilities and assets associated with leases has been identified.
Originality – the peculiarity of the scientific work lies in the descriptions of the provisions of the new standard IFRS 16 «Leases» and its impact on the key financial indicators of the company.
Summary – the changes in IFRS 16 will affect, to a greater extent, those companies that have a significant share of leases in their financial portfolio.
IFRS 16 requires extended disclosures in financial statements by both the lessee and the lessor. The purpose of this disclosure is to provide users of financial statements with information to assess the impact of leases on the financial position, financial results and cash flows of the company. In addition, the tenant will disclose more information about his rental activity, and the lessor will disclose the operating lease and the residual value risks.

62-72 635
Abstract

By order of the President of the Republic of Kazakhstan N.A. Nazarbayev, the Government approved a completely new Employment program “Employment roadmap – 2020”. It includes three important tasks: creation of the efficient system of training and support in employment; support of business development in villages; increase of labor resources mobility, priority employment in the centers of economic activity of Kazakhstan. One of more important tasks is the employment of the citizens of Kazakhstan. With this regard, the article evaluates economic efficiency of state programs of the Republic of Kazakhstan (at the example of “Employment roadmap – 2020” program) to identify problems of employment of the population.
Purpose – to evaluate economic efficiency of state programs of the Republic of Kazakhstan (at the example of “Employment roadmap – 2020” program) for the purpose of revealing the problems of the population employment and determining possible ways to solve them.
Methodology – synthesis, content-analyze, accommodation, monographic method, factor analysis, economic-statistical research method.
Originality/value – in his Address to the Nation of Kazakhstan “Social and economic modernization is the main vector of development of Kazakhstan” in 2012, the President of the Republic of Kazakhstan N.A. Nazarbayev defined the employment of Kazakh people as the first set of tasks for development of Kazakhstan. At the same time, an important aspect is Evaluation of economic efficiency of state programs of the Republic of Kazakhstan in the labor sphere, which allows to identify problems of population employment and to identify possible solutions to them, which is a vector in the development of the labour market in the country’s regions.
Findings – according to the evaluation, the following target program indicators are considered as the final results of the program: the unemployment rate – 5% in 2015 (the planned value is not more than 5%); poverty level – 2,5% in 2015 (the planned value is not more than 6%); the share of employed people in the total number of self-employed population reached 77,6% in 2015 (the planned value is 64,5%).
The author also calculated relative indicators such as specific weight of participants, who completed training (on professional training direction), specific weight of employed for the permanent workplace, specific costs for employment of one participant of the youth practice for the permanent workplace and other indicators in the article, which are absent in official reports.

73-83 379
Abstract

Purpose – an economic and mathematical analysis of the article is aimed at determining the competitiveness of the construction sector, studying factors of quality of apartments, reliability of construction works and the attractiveness of consumers. As a result of research of factors of ensuring competitiveness made a forecast for the future.
Methodology – analysis of prices for second-degree apartments by district of Almaty in Gretl program
Originality/value – factor analysis performed data on actual statistics of Almaty. According to the research, the prices for apartments in Almaty are estimated by the area.
Findings – two factors identified to ensure the competitiveness of the city of Almaty. They are: the apartment is located area and euro repair. Identified two factors directly proportional to the value of the apartment revealed. Correlation and regression analysis were performed to the market value of one-room apartments in Almaty.

FINANCE AND ANALYSIS

84-95 316
Abstract

Purpose – evaluate the investment attractiveness of the industrial region and, on this basis, identify the reserves to increase its level.
Methodology – the study was conducted using general scientific methods of analysis and synthesis, dialectical method, system approach, comparison, statistical groupings and forecasting.
Originality/value – the authors analyzed the investment activities of the Pavlodar region, assessed the current state of the investment attractiveness of the industrial region. Based on the analysis carried out by the authors, the authors proposed the possibilities for increasing the investment attractiveness of the region.
Conclusions – the results of the study showed that positive changes are observed in the investment area of the region. This concerns both its resource component and its performance characteristics, in particular, attracting additional capital inflows that contribute to economic growth, as well as efficient use of regional competitive advantages, which are a combination of conditions prevailing in the region that distinguish it from other regions and determine its long-term development prospects.

96-107 393
Abstract

Purpose – the purpose of this study is to analyze the relationship between the quality of internal control and performance of commercial banks in the U.S.
Methodology – the paper analyses the reports on internal control over financial reporting of 30 U.S. largest publicly traded banks during the period 2013-2017. The study also examines social media for any news related to the banks internal control issues. The research applies the COSO Internal Control Framework for classifying identified control deficiencies. It uses a regression analysis to investigate whether there is a relationship between identified deficiencies and banks’ performance.
Findings – overall, the study finds a negative impact of identified deficiencies in risk management and information and communication components of internal control system on bank performance.
Originality/value – the study contributes to a limited research on the impact of internal control system on bank performance. Moreover, the research focuses on a recent performance period. The majority of existing studies focuses on earlier post-Sarbanes-Oxley Act period. The issue is particular important for Kazakhstan, where a regulatory requirement to report on quality of banks’ internal control systems’ quality is absent.

108-115 5069
Abstract

Purpose – the study has two main objectives. The first goal is to assess the current status of the banking sector through analysis the activities of commercial banks in Kazakhstan, the second is to consider the problems of the functioning of commercial banks that is the reason of the bankruptcy of commercial banks.
Also, to determine the prospects for the development of the banking sector in Kazakhstan.
Methodology – this study was conducted in program R. The quantitative approach includes a cluster analysis of the concentration of banks. The research is based on key data from regulatory financial statements of banks and disclosed information, obtained mainly from sources such as the National Bank of the Republic of Kazakhstan (NBRK) and Kazakhstan Stock Exchange (KASE). The survey covers 35 banks in 2013 from 32 banks through 2017, accounting for 99% of the banking system assets of the country.
Originality/value – the last five years for the financial market of Kazakhstan, especially for the banking sector have been heavy and accompanied by a deterioration in the activities of leading banks, as well as the merger and acquisition of systemically important banks. Despite GDP growth and rising oil prices, Kazakhstani banks are still vulnerable. The problems of the activities of commercial banks have become nationally significant aspects for the government, which is evidence of the infusion of the regulator into the banking sector. In this study, we attempted to review and analyze the activities of commercial banks through clustering and grouping of banks depending on the activity and key financial indicators.
Findings – According to the survey and analysis of the banking sector, the authors found a trend in the deterioration of the activity of commercial banks despite state support and programs for improving the banking sector. The main source of decline in profitability and the emergence of default from banks is the level of non–performing loans in the loan portfolio.

116-129 404
Abstract

Purpose – the aim of the study is to increase the investment attractiveness of the Kazakhstan Stock Exchange.
Methodology – when measuring the autonomous risks of individual markets, indicators were used: aver-age market yield, portfolio variance, standard deviation and coefficient of variation; correlation and regression analyzes was used to determine the relationship between stock indexes. The observations were carried out on 15 stock markets, the study period is 10 years from 2008 to 2017 (120 monthly observations). Calculations were performed using the GRETL software. In the models, the following statistical indicators were used: Tstatistics, P-value (F), Schwartz criteria, Akaike and others.
Originality / value (i) integration with specific stock exchanges will lead to an improvement in the position of Kazakhstani investors in both increasing profits and reducing risks; (ii) in the obtained scientifically-based conclusions about the investment characteristics of the Kazakhstan Stock Exchange in terms of profitability, which is greatly underestimated, due to the systematic devaluation of the national currency and in the long term (excluding dividend yield); (ii) placing Kazakhstan shares at the stock exchanges of developed countries, including the London (London Stock Exchange) and Paris (Euronext Paris) stock exchanges, is not scientifically justified, this practice leads to a decrease in the value of shares.
Findings – as a result of the study, the authors identified that: (i) integration is preferable to be carried out by outputting the relevant indices at KASE: this will create an additional tax effect for Kazakhstani in-vestors; (ii) in order to increase the value of companies, capitalization of the stock market, it is necessary to place companies at KASE, with large investments in intellectual capital.

130-145 401
Abstract

Purpose of research – is to influence prompt decision-making on the financial market in case of risk management of the bank. The banking sector is usually undergoing a serious reform phase. The bank's risk leads to the loss of credit institutions and deterioration of liquidity, due to adverse events occurring, depending on internal and external factors. Investigating the bank's risk management basics using modern approaches to risk assessment and management in banking.
Methodology the article discusses the organization of the bank risk management system, methods of risk management, quantitative and qualitative risk assessment. Banks use various methods to reduce their risk. Quality of the bank's management, especially the risk management process, are the key factors that ensure stability and security of banks and the banking system as a whole. The main types of risks, risk management system, ways of managing bank risks and ways to reduce them were considered. Common methods of scientific research have been developed.
Original / Value it is necessary to pay special attention to the risks of banks on the financial market. The deterioration of the situation in the financial market was associated with problems accumulated over many years, and some problems were solved, which in turn led to risks.
Findings – the structure of the bank's risk management mechanism is presented, the characteristics of its elements are identified and the key objectives of the management mechanism are identified. In the study, all banks in the financial market were analyzed using the models in Gretl, with the major risk factors being analyzed.
Conclusion the mechanism of risk protection of banks consists of current methods of risk management and methods of its reduction. The roles, responsibilities and powers of regulatory bodies in the creation of an effective system of legal norms regulating the peculiarities of the risks taken by the bank are risk management as an element of the internal control system of banks. In the conditions of instability of the modern economy, the banking market can not be risky. The risk is in any bank activity, but it can be at different levels. In addition, the current risk management is to monitor important indicators and timely adopt operative decisions on banking transactions.

146-154 361
Abstract

Purpose – Study of the effectiveness of the monetary policy of the National Bank of the Republic of Kazakhstan and suggest directions for its improvement. The study of the theoretical and methodological foundations of monetary policy, the mechanism for implementing monetary policy in the Republic of Kazakhstan, determining the importance of the exchange rate as a regulatory tool, identifying monetary policy problems and proposing ways to improve it.
Methodology – when writing the article, were used the following methods of economic analysis: a synthesis of theoretical concepts, methods of expert, mathematical and economic analysis.
Originality – the results and proposals presented in the article can be used in the preparation of the monetary policy of the National Bank of the Republic of Kazakhstan and in the implementation of the monetary policy of commercial banks.
Findings – the effectiveness of the monetary policy of the National Bank of the Republic of Kazakhstan was evaluated and ways for its improvement were proposed.

BUSINESS AND CORPORATE MANAGEMENT

155-162 248
Abstract

Purpose – to develop an algorithm for drawing up a strategic program for innovative development.
Methodology – general scientific methods are used: synthesis, analysis, comparison, generalization.
Originality/value – the article examines the types and principles of production, management and labor potential of small innovative enterprises. The measures for potential formation with regard to the strategic direction of potential development of an innovative small enterprise were considered. Research results could be useful for managers of small business enterprises when introducing innovations and for those who are engaged in research in the field of small business potential, innovation and strategic management.
Conclusions – it is necessary to form the potential of an innovative small enterprise, based on the strategic direction of its development.

163-168 488
Abstract

Purpose the article considers the theory of economic strategy, types and types of strategy, the possibility of diversifying a business under the influence of external and internal factors. The strategy is presented as a system of interrelated rules and techniques. With their help, achieved competitive advantage in the market. Therefore, the objectives of an economic strategy are, as a rule, increasing competitive advantages, making a profit and expanding (diversifying) a business.
Methodology the influence of external and internal factors on the results of the strategy implementation is considered in the course of the analysis, the main methods of which are presented in this article.
Originality/value – in accordance with the goals set objectives of economic strategy. Depending on the goals and objectives, distinguish the main types of strategies. The article presents the most essential features of the classification of strategies and stages of its implementation. The author has developed the basic principles of evaluation and methods for monitoring the implementation of the strategy. And determined the dominant strategy of enterprise development in the context of globalization. Using various methods of analysis and diversification tools is aimed at finding and finding the optimal strategy for further business development. The strategy is presented as a system of interrelated rules and techniques. With their help, achieved competitive advantage in the market. Therefore, the objectives of an economic strategy are, as a rule, increasing competitive advantages, making a profit and expanding (diversifying) a business. In accordance with the goals set objectives of economic strategy. Depending on the goals and objectives, distinguish the main types of strategies. The article presents the most essential features of the classification of strategies and stages of its implementation. The author has developed the basic principles of evaluation and methods for monitoring the implementation of the strategy. And determined the dominant strategy of enterprise development in the context of globalization.
Findings – using various methods of analysis and diversification tools is aimed at finding and finding the optimal strategy for further business development. The presented strategy levels, strategy development stages show the importance of developing a strategy for an enterprise.

169-179 261
Abstract

Purpose – the author analyzed the main problems that determine the insufficient level of innovation activity in Kazakhstan. We consider the difficult tasks of forming a base for building an innovative economy, with their focus not only and not so much on the current and even medium-term, but also on the long-term.
Methodology – proposals are made on possible measures of real progress in terms of the implementation of key areas for creating a national system and a mechanism for enhancing innovation and commercializing its results.
Originality / Value – is to intensify innovation in the conditions of commercialization of intellectual property of both public and private enterprises and enter them into the market.
Findings – the solution of the large-scale task of forming an innovation-oriented system, an integral part of which should be the subsystem of commercialization of the results of innovative intellectual activity, should be based on the joint efforts of state bodies, scientific research institutes, expert and business communities, manufacturing enterprises. The tasks and the issues they define in terms of creating conditions for the development of the innovation system and the commercialization of research results determine the objective need not only for further comprehensive research in the direction of improving theoretical, methodological and methodological approaches, but also taking concrete steps in a practical way.

GLOBALISATION AND KAZAKHSTAN

180-190 260
Abstract

Purpose of research – to identify the state approach to the integrated sustainable development of rural areas of Korea and propose ways for Kazakhstan’s rural development.
Methodology – a monographic method was used on the example of the Munkyoung’s Omija case, as well as the method of analysis and synthesis. The essence, features of the reform of the accelerated development of rural areas of Korea called the 6th industrialization is considered.
Originality – the proposed mechanisms for integrated business integration, government, science to increase the income of the rural population, creating jobs through value added from agricultural production.
Conclusions – in the course of studying the experience of Korea in rural development, the following conclusions can be drawn: the reform of the 6th industrialization is the convergence of production with processing and marketing, the formation of an ecosystem, including tourism or the creation of jobs in the region; for the implementation of the 6th industrialization, the budgets of the national and local levels, the investments of public organizations were attracted; subsidies within the framework are allocated, using a hard screening of participants so that those who are worthy of it receive funding.

191-199 276
Abstract

The research shows the tendencies in strengthening state regulation of innovative activity, which are visible in developing innovative systems of several countries (the U.S., Japan and European Union). The paper reviews the features of innovative policy in the U.S., contributing to its activation. The author reveals also the features of innovative policy in Japan, covering the efforts of the state and business in achieving the best results of innovative activity.
It is reported the features of main public regulation measures of innovative activity in the EU member-states, which successfully develop national and regional innovative systems too (Germany, United Kingdom and France). The research presents several recommendations regarding the possible consideration of tendencies in improving regulation measures of innovative activity, created as a result of the research.
Purpose – to assess the features and tendencies of strengthening of innovative policy of foreign countries (on the example of the U.S., Japan and the European Union) for possible its consideration in improving regulation measures of innovative activity in the Republic of Kazakhstan.
Methodology – synthesis, content-analyze, accommodation, monographic method, factor analysis, economic-statistical research method.
Originality/value – in countries that have achieved significant results in the innovative development, along with the direct methods of state regulation, the most important place that takes financing, and also are taken the measures for the diffusion of innovations with an emphasis on stimulating methods. One of the problems to be solved in close combination of these methods is the development of innovative cooperation.
Findings – globalization and regionalization, the growth of high-end technologies, the limited resources of domestic subjects of innovative activity lead to the fact that innovative cooperation has the significant potential for activization of innovative activity, including at the regional level, and the degree of intensity of its use within state regulation of innovative activity is increasing rapidly. This is evidenced by the experience of the EU, U.S. and Japan.

200-209 293
Abstract

Purpose consideration of the foreign experience of cluster development of the economy as one of the factors of increasing the competitiveness of national economies. Clustering models of developed and some developing countries, like the USA, some countries of the European Union, India, Russia and China are analyzed.
Methodology the study was conducted using a comparative analysis of foreign researchers M. Porter, M. Muro, B. Kac and other scientists. The correlation coefficient r is determined, which determines the dependence of the variable factors. And a diagram is constructed on the basis of one of the variables that affects the development of the economy.
Originality / Value the author describes the model of cluster development and identifies the main advantages and weaknesses of national cluster policies.
Findings in conclusion of the study, the interacting factors that shape the innovation environment, a favorable investment climate in the regions and an innovative structure for the cluster participants are considered.

210-220 756
Abstract

Purpose – to conduct a comparative analysis of world demographic policy and consider motivational systems to increase the birth rate of the Republic of Kazakhstan with other states around the world.
Methodology – the research is based on methods of comparing the demographic policy of Kazakhstan and other world states and groupings of similar countries and quantitative analysis.
Originality / value – the author analyzed data for the last 60 years and grouped countries with similar demographic problems. The analysis revealed that Kazakhstan’s policy in the field of demography is similar to countries that are aimed at increasing the birth rate, and also shows the trend of changes in maternity benefits.
Findings – the results of the study showed that over the past 60 years there have been great changes in the number and composition of the population throughout the world. Worldwide, the population is aging, due to lower fertility rates and an increase in life expectancy. In the countries of the first type of population reproduction, a demographic policy is predominant, aimed at increasing the birth rate and the natural increase of the population. The analysis revealed that the active demographic policy is followed by the countries of Western Europe and Kazakhstan. The article shows effective measures to increase the birth rate of the above countries and analyzes the factors influencing the birth rate.

THE ECONOMY OF SUSTAINABLE DEVELOPMENT

221-230 878
Abstract

Purpose – this paper is devoted to disclosing international business strategic approaches to develop the agricultural sector in Myanmar as a highly potential market of South-East Asia.
Methodology – the research methodology of this paper is based on conducting the comparative analysis of existing patterns of macroeconomic development, political and social issues in the context of the agricultural industry in Myanmar. It is also implemented PESTEL, SWOT, risk management analysis, systematic vision, causes and consequences analysis, and expert assessment.
Originality/Value – Myanmar, previously known as Burma, is the second-largest country in South East Asia with a strategic geographic location bordering India, China, Thailand, Laos and Bangladesh having many contemporary attractive competitive advantages for international business development. The given research is studied the agricultural industry in the context of analysis of leading agricultural operating both in Myanmar and ASEAN community. Thus, this article presents the most contemporary analytical review of this current international business situation of the agricultural sector in Myanmar based on the most contemporary data.
Findings – in the given research it has been studied the current issues of international business strategic approaches for the agricultural sector in Myanmar. It is carried out risk identification, risk assessment and risk management analysis detecting significant business development environmental factors for the Myanmar agricultural sector. Based on risk management methods, it is suggested possible risk management and control strategies. Moreover, it has been considered the further recommendations for strategic development of the agricultural business in Myanmar.

231-242 457
Abstract

Purpose – to consider the possibility of using energy efficiency standards to achieve sustainable economic growth.
Methodology – graphic and statistical analysis in the process of research, comparison methods have been applied.
Originality / value – the article analyzes the opinions of foreign and national researchers in the field of energy efficiency and standardization, provides various definitions, recommendations of international organizations and best international practices for implementing standards. In the article, the authors note that improving energy efficiency and energy saving are key elements of the process of sustainable development, also made recommendations based on international experience for Kazakhstan.
Conclusions – the principles of sustainable development imply a comprehensive solution to problems in the following areas: economy, society and ecology. This approach is supported by the governments of 170 countries and is based on supporting the use of green technologies. Energy efficiency can be an important indicator of the development of various sectors of the economy in the direction of introducing the most environmentally friendly and resource-saving technologies and industries. The introduction of standards in the field of energy efficiency allows you to have a clear understanding of the indicators and processes that meet the stated goals of the programs for improving the energy efficiency of the economy across sectors.

243-254 270
Abstract

Purpose – the article analyzes the indicators of the development of urban agglomerations with first-tier cities and assesses their importance in the economic development of Kazakhstan. Such indicators as the population of Kazakhstan and agglomerations, the demographic capacity of cities-centers of agglomerations, the gross regional product by activity and retail trade, which confirms their status as centers of economic growth of the country, are analyzed.
Methodology – during the research comparative analysis, methods of system and logical analysis, deduction, observation, expert evaluation were used. The analysis of the numerous program documents directed to the solution of regional problems that not all of them in a due measure are carried out.
Originality / value – the purpose of the analysis is to identify deficiencies in the management of agglomerations and to develop recommendations for improving the mechanism for managing them.
Findings – as a result of the study, positive and negative aspects of the development of urban agglomerations, their role in ensuring the economic growth of the country were identified. The study of foreign experience has shown that not all urban agglomerations are developing successfully. The analysis showed that the official data do not contain accurate information about the structural components of the first level agglomerations, in particular, the Astana and Almaty agglomerations. A number of recommendations were proposed for improving the management of urban agglomeration.

255-264 470
Abstract

The purpose of the research is to investigate the beginning of the cooperation process in Kazakhstan, its development and decline. The management structure of cooperative organizations from the early stages has been studied, as well as the factors influencing the development stages, and the reasons for the stagnation decline.
Methodologically, this paper builds on previously published studies on agricultural cooperatives development, legislative documents, as well as comparative and statistical analysis.
Originality / value – the development of agricultural cooperatives in Kazakhstan has been studied with the focus on management process of cooperative organizations that is key to the overall productivity and effectiveness in cooperative relations.
Conclusion – the challenges of agricultural cooperatives development in Kazakhstan are caused by the shortage in managerial and organizational activity, unclear strategy that directly influence on each stage of cooperative development. Therefore, it is necessary to take measures for the further development of cooperation in Kazakhstan.

265-276 273
Abstract

Purpose – conduct a comprehensive analysis of the state of agricultural development in the Almaty region and assessment of the efficiency of production by areas.
Methodology – when writing the article, were used asbestos-logical, monographic, comparison methods, expert assessments, economic-mathematical, economic-statistical and other methods of economic research.
Originality – the results of the analysis highlight the issues of agricultural production, form the mechanism of sustainable development.
Findings – was carried out performance analysis of agricultural products of the Almaty region, were proposed the ways of sustainable development of the agrarian sector.

277-286 333
Abstract

Purpose – To analyze the city’s competitiveness in terms of intellectual approach and comfortable for living (existence).
Methodology – The quantitative indices of the competitiveness of the Almaty city and other cities have been studied comparatively; the analysis of the city’s competitiveness from the point of view of the intellectual approach and comfort for existence has been carried out, used R-program (Data science).
The logical chain “determination of quantitative indicators of the city's competitiveness assessment” was investigated → “identification of weak positions” → “Determining the reserves of increasing competitiveness”.
Originality/value – The conclusion is made about the importance of creating comfortable and favorable conditions, improving the competence of human capital and the education system.
The necessity of an estimation of intellectual potential is proved. When creating methods for assessing intellectual potential, it is advisable to take into account as many factors as possible, including age, level of education and qualifications, competence, staff participation in raising the level of professional training and the intensity of retraining, the number of innovative transformations, the frequency of ideas generation.
Further research and development of criteria and indicators for measuring intellectual potential will provide a real assessment of the city's competitiveness, quantify key competencies, assess competitive advantages and concentrate the resources necessary to strengthen them.
Findings – The mechanisms of intellectual potential enhancement can be used both to improve the activities and strategies of the city's development, and within the framework of economic alliances with the participation of our country.

INNOVATIVE ECONOMY

287-294 255
Abstract

The article is devoted to the formation and development of innovative services in the agricultural sector and its structures. On the example of poultry companies of the Turkestan region, an analysis of the company's economic activity was conducted. Identified and evaluated the impact of innovation on productivity and the achievement of sustainable economic growth in the company, as well as to increase its competitiveness in foreign and domestic markets.

295-302 449
Abstract

The study was conducted in the framework of the grant project of the Ministry of Education and Science of the Republic of Kazakhstan AR05136068 “Competitiveness and stress resistance of civil aviation of the Republic of Kazakhstan”.
Purpose – to analyze the current state, trends and the market environment of the civil aviation industry in the Republic of Kazakhstan. Attention is paid to analysis of problems in the industry and to directions of its development.
Methodology – in order to identify the untapped potential for improving the competitiveness and sustainability of the civil aviation industry, economic and statistical methods, groupings, and a graphical method were used.
Originality/value – the criteria and indicators of the civil aviation industry are given, in accordance with which the effectiveness of functioning of the civil aviation system is assessed, development trends and the market environment of the civil aviation industry of the Republic of Kazakhstan are justified.
Conclusion – as a result of research and analysis of the current state of civil aviation in the Republic of Kazakhstan, identified problems of the industry and developed areas to improve the efficiency of its activities.

303-313 342
Abstract

Purpose – consider the process of restructuring the railway infrastructure and give the results of the restructuring under the influence of the ongoing reforms.
Methodology – the study was conducted using comparison, observation, and quantitative analysis methods.
Originality/value – the author has analyzed the current situation in the railway industry, outlines the stages of reform. Based on the study, the process of restructuring by type of services provided by the railway industry of Kazakhstan was reflected.
Findings – the results of the study showed that the ongoing process of transferring assets to a competitive environment will significantly change the infrastructure of industries, through the merger, reorganization and liquidation of unprofitable assets. The example of NC KTZh JSC, which is an active participant in the second wave of privatization, shows the optimal structure of a company in which assets are combined by type of activity, which significantly reduces the number of assets of companies, given the powers that will be given to facilities after the restructuring of the industry.

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Abstract

Purpose – analysis and study of foreign experience in reforming railway transport.
Methodology – during the research general scientific and comparative methods were used. At a research of a problem general scientific methods of studying, methods of statistical information processing were applied.
Originality/value – As the analysis of structural changes in different countries carried out in the last century showed, the reform of the industry was a strategic task, which was supported at the state level.
Findings – the article studied the foreign experience of reforming railway transport. The experience of a number of successful reforms allows us to formulate four main points, such as the separation of the existing system of Railways from public administration, the introduction of a management system by type of transport, the introduction of a vertical separation system, the creation of private partnerships.

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Abstract

Purpose – to analyze the state and prospects of development of the Kazakhstan market of inbound tourism, to identify problems in this area in the context of global economic instability.
Methodology – the study was carried out using such methods as: abstract - logical and comparative analysis, descriptive method and generalization were also used. The sources of research were theoretical and analytical articles, the works of Kazakhstan and foreign authors, which deal with issues of the Kazakhstan market of the tourist industry.
Originality/value – authors present the main problems and development trends of the Kazakhstan tourism market. The main directions of state support for the effective development of inbound tourism in the Republic of Kazakhstan are proposed.
Findings – in our opinion, the expansion of interregional and international relations of Kazakhstani enterprises of the tourism industry contributes to the increase in the level and quality of tourist services provided, the promotion of the tourist product to interregional and international markets, as well as to ensure the participation of tourist enterprises in international exhibitions and fairs, conferences, seminars, business meetings. The infrastructure of support for inbound tourism should be improved in such a way that it is able to most effectively serve tourism and business activities, both at the republican and local levels.



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ISSN 2789-4398 (Print)
ISSN 2789-4401 (Online)